The North Port, Florida, housing market has cooled more than any other major metro in the U.S. as supply rises and demand falls, according to a report by Redfin.
Demand for homes along Florida’s Gulf Coast is declining as natural disasters intensify—and cause insurance costs to balloon—new construction projects flood the market and home prices decline, the report said.
“Inventory is back up to pre-pandemic levels along the west coast of Florida as natural disasters continue to shape the region’s housing market,” Redfin Senior Economist Elijah de la Campa said in the report. “Construction is booming in the wake of recent climate disasters, and there’s less demand to buy new homes as the region braces for another intense hurricane season.”
North Port highlights the slowdown more than anywhere else in an analysis of the U.S.’s 100 most populated metros. The supply of homes for sale in the city increased 68% year over year in April, while the median price per square foot was down 1.2%, and 42.6% of sellers discounted their asking price, up from 36% last year.
Florida cities Tampa, Cape Coral and Orlando followed North Port as the fastest-cooling markets, according to Redfin. Denver was the only city outside of Florida among the top five. Other slowing housing markets outside the Sunshine State included Houston, Minneapolis and Dallas.
Severe weather damage has not only cost Florida more money than any other state, but has led to rising insurance premiums. An April survey by Redfin found that 70% of Florida homeowners have seen home insurance costs rise recently.
Meanwhile, Florida ranks as the second busiest state for new home construction after Texas. That abundance of housing supply is bad news for sellers but has given buyers the upperhand.
“A bigger pool of listings to choose from is good news for the region’s home buyers,” said de la Campa. “More supply is the best way to bring down prices and combat the housing affordability crisis buyers are facing today.”
By contrast, a number of cities in the northern U.S.—parts of which face a severe shortage of housing stock—remain hot, according to the report.
For instance, Rochester, New York, has heated up the most over the past year, with inventory falling more than 15% and price per square foot up 11.5%. Lake County, Illinois, just north of Chicago, also logged hot market metrics in April, with prices up 13% and inventory down 11.3%.
